Amid the ongoing legal tussle between Binance and the U.S. Securities and Exchange Commission (SEC), Binance’s attorneys have come up with interesting allegations. They have recently alleged that the SEC Chair, Gary Gensler, approached the crypto giant Binance for an advisory role in 2019. This claim comes amid Gensler’s ongoing crackdown on the crypto industry, marking a sharp contrast to his previous application for a role at Binance.
Gensler, who was a professor at the Massachusetts Institute of Technology’s Sloan School of Management at the time, allegedly offered to serve as an advisor to Binance. Binance attorneys claim he did so in conversations with Binance’s founder, Changpeng Zhao, and other executives. The filing, submitted by Gibson Dunn and Latham & Watkins, Binance’s law firms, noted that Gensler met with Zhao for lunch in Japan later that same month.
The relationship didn’t stop at this meeting. The attorneys allege that Zhao kept in touch with Gensler. Their relationship went as far as Zhao participating in an interview at Gensler’s request for a cryptocurrency course he taught at MIT.
In another twist, the filing alleges that later in 2019, Gensler was set to testify before the House Financial Services Committee and reportedly sent Zhao a copy of his planned testimony in advance. The nature of this pre-shared testimony and its relevance to Binance remains unclear. However, such information being published is amazing because of Gary’s current stance on crypto.
Binance vs. SEC: Will Cryptocurrency Fall?
This development adds a new layer of complexity to the ongoing legal issues between Binance and the SEC. The former is battling allegations of mismanaging customer funds and misleading American investors. Neither Zhao nor Gensler have made any public comments regarding these allegations as of now.
Gary Gensler is widely recognized for his tough stance against cryptocurrencies. Over recent months, he has advocated for more stringent regulations, arguing that all cryptocurrencies are securities. Nevertheless, he left out Bitcoin, a cryptocurrency he believes is not a security. This viewpoint is in stark contrast with the decentralized ethos of the crypto industry. Additionally, it is particularly at odds with his alleged former intent to serve as an advisor to Binance.
While these allegations are yet to be confirmed, they unquestionably stir the pot. As the battle goes on, this casts an intriguing shadow over the ongoing legal proceedings. The SEC’s stringent crypto regulations under Gensler’s leadership have been a topic of significant debate within the industry. So, this development is a point of keen interest for market watchers.
Given the high stakes involved and the potential impact on the future of crypto regulation, all eyes will undoubtedly remain on this legal battle. Any further revelations about the relationship between Gensler and Binance will be in the spotlight from all media outlets in fintech and crypto.